Harare — GOVERNMENT has been forced to come up with new rules aimed at restricting foreign trips by Ministers and top civil servants after the globe-trotting officials gobbled up nearly US$30 million in six months on external junkets some of which were unnecessary.

Finance Minister Tendai Biti said there is widespread abuse of fuel and government vehicles by officials, a development that will see a special audit being conducted next year to establish the extent of the rot and proffer corrective measures.

On the abuse of fuel, where a recent audit by the Comptroller and Auditor General Mildred Chiri revealed some senior government officials had accessed as much as 5 000 litres of fuel per month, Biti said starting January, a new framework would be in place to curb abuse.

In addition, government will put a cap on all foreign trips after previous calls by treasury to limit unnecessary travelling fell on deaf ears.

"The disproportionate share of foreign travel amounting to US$28, 6 million to October 2009 is a detriment to overall service delivery. This is despite previous calls by Cabinet office and treasury for ministries to limit foreign business travel to only important and crucial meetings and conferences geared towards the promotion of national socio-economic recovery efforts," he said.

"Therefore, with effect from January 2010, business travel for individual ministries will have to be managed within the voted amount and the monthly allocations availed for this purpose...Furthermore, treasury, in consultation with the Cabinet office, will establish a new framework with rules to deal with this issue."

In line with the principle of separation of powers, Biti said the judiciary and Parliament will no longer fall under the Public Service Commission.

Still on Parliament, he said government was setting up a Constituency Development Fund (CDF) that will see each of the country's 210 constituencies receiving US$50 billion for development purposes.

The constituency House of Assembly member will chair the fund's committee that would also be constituted by the area's elected councillors while the senator would be an ex-officio member.

He said the fund, which has been allocated US$8 million in the budget would be used for the construction of boreholes, repair of schools and clinics, among others.

"Further, the CDF shall not be a parallel structure to any of the established structure but a mere vehicle in respect of which an elected MP has an opportunity to make and deliver real change to the local community. Equally the CDF is not intended to be a self-enrichment pot," Biti said.

In order to enhance the credibility of the local examination system, he said government will undertake reforms of the Zimbabwe Schools Examination Council as well as the overall examination system.

He allocated US$13, 8 million to be used towards the procurement of learning materials and equipment, adding that the amount would be complemented by US$28 million to be provided by donors under the Education Transition Fund.

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2009 Budget highlights

Munyaradzi Mugowo and Clemence Manyukwe

- Value of Budget US$2,25 billion

-Revenue US$1,44 billion

- Expenditure US$2,25 billion

- Wages 33 percent of Budget

- Capital expenditure 8 percent of Budget

- GDP target -- 7 percent

- Inflation target 5 percent

- Duty on light vehicles reduced from 40 percent to 25 percent

- Duty on half tonne trucks reduced to 20 percent.

- Corporate tax cut

- Tax-free threshold raised

- Tax-free bonus raised

- Excise duty on spirits doubled

- VAT payment date extended

- NSSA's dominance diluted

- Constituency Development Fund set up

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Bill to curb abuse of public funds on cards

Clemence Manyukwe, Senior Political Reporter

CABINET ministers will soon be required to explain to Parliament on a monthly basis the use of public funds as part of a new proposed law that would see those who abuse State funds being prosecuted.

The legislation, the Public Finance Management Bill currently before the House of Assembly, is being sponsored by Finance Minister Tendai Biti.

"The imperator in Section 3 of the Bill obliges Cabinet ministers to report on a monthly basis how much they have received and what they expended on monthly. Honourable Speaker, I would like to say this is a Bill that will revolutionarise our thinking, implant a major paradigm shift in the way we have handled public accounts. If there is proper enforcement of this Bill, I can guarantee you that one or two of us would be prosecuted by the Attorney General (AG) whom I see over there," Biti told the House of Assembly on Tuesday.

The AG, Johannes Tomana, is an ex-officio Member of Parliament.

Biti said upon the introduction of a similar law in Nigeria there was a drop in the number of corruption cases, while accountability for public funds increased. The Bill's memorandum says its purpose is to: "enhance effective and responsible economic and financial management by government including ensuring that roles and responsibilities are clear for all those involved in the management of public finance; to provide for the implementation of generally accepted accounting standards; to promote the accountability of public entities in the management of public resources; to make available such information as well as enabling Parliament to be informed of the scrutiny of public expenditures, revenues, assets, liabilities and the management of public money."

The impending law also deals with the presentation of the country's budget as well as the administration, raising and repayment of State loans.

On the budget, it seeks to make it compulsory for the executive to consult and discuss with parliamentary portfolio committees in the formulation of the fiscal policy.

Presently, there is a requirement for such consultations but it is not mandatory.

The Bill also says if a minister fails to present before Parliament financial statements for that year, the Speaker of the House of Assembly would require the concerned individual to submit a written explanation to Parliament setting out the reasons for his or her failure.

On the issue of debt: the Zimbabwe Coalition on Debt and Development recently submitted proposals on the matter to Parliament which in part said: "the process by which debtor countries agree to take on the terms and conditions for loans need to be opened up to scrutiny by citizen groups and their representatives in Parliament and other formal democratic structures."